What the Lender Expects From Your Application for Funding.

PART II

What level of risk are you?

Every loan seeker is a risk to a bank. Loaning money is the main product of any lender and they're alive to the inherent risk. As such, you'll be painstakingly evaluated and your ability to meet your end of the bargain in repayments will be carefully scrutinized. Demonstrating that you're able to perfectly, confidently, determinedly and skillfully complete the project funding is being sought for will be imperative.

Don't expect a banker to believe in you and your investment while you don't. Note that the bank is not interested in many things except your ability to repay the loan and execute your business ventures successfully. Ensure that the business plan you deliver to the bank isn’t just well thought-out, succinct, compelling but also clear.

Be ready for probing questions

Lots of factors will be looked into as the viability of your investment is examined. Bankers will seek to know your financial muscle. Your net worth is important and financial statements will attest to this. Your ability to repay the loan will be ascertained from earnings of your business. Credit history is important as well and you should ensure it's in order before approaching the lender.